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If you can't get a loan at the bank, then you still have options even though they don't look as tasty as a low APR loan. Women with good credit can easily get a loan at their bank. What's a good credit score? Anything over 650 can get you a loan if you don't have any current delenquincies. Even a charge off won't stop you from getting a loan if you have shown financial responsibility in the last 3 years.
In some states you can't get a personal loan to pay off bills, yet you can get one for vactioning or remodeling or even for new clothes. The bank WILL ask you what you want the loan for. If you say you want to pay off your bills, you might not get it. If you go in there and tell them you want a debt consolidation loan, instead of a personal loan, then you might get it or a some advice on how to get one.
One almost guaranteed way to get a loan is to put up collateral in the form of a savings account, CD, or money market account with their bank.
Where do you get the funds for this?
Well, one way I did it was to borrow $5,000 from a family member with the promise that I would give it right back within 2 days.
I then went and bought a 2 year $5,000 CD at my bank. Then I turned around and told them that I wanted to borrow $5,000 against my CD as collateral. Not only did they agree, but I got a great interest rate of less than 3% because I had done it that way. I borrowed $5,000 on a two year note for less than 3%. My $5,000 CD was also earning a small interest rate. I took the $5,000 cash and paid back my relative within the 2 days just like I promised. I now had a loan payment, but I ALSO had a $5,000 CD in the bank!
After 2 years, the CD was free and clear, so I left it in there and borrowed against it again the same way. Now I had $5,000 cash to spend AND my $5,000 CD was still in the bank earning interest.
Some people said to me, "Yeah, but now you had a loan payment for 2 years." I explained that I didn't look at it that way. I looked at it like I was putting money away every month for 2 years into a savings account, and sure enough when the 2 years was up, I was 5,000.00 richer!
There are several creative ways to get a personal loan if you just put your thinking cap on. One thing to note: IF you have bad credit and you know it, you are going to pay higher interest rates and sometimes extra loan fees. There are several online programs now where you can find personal loans and business loans for those with poor or bad credit. Be prepared for those extra fees and higher interest rates.
It just depends on the urgency of your situation. Sometimes a payday loan can get you out of immediate trouble. Just pay that back on time to avoid any extra fees. A payday loan that keeps you from bouncing checks will cost you a lot less than some of the bank fees for bounced checks and the other bad check fees from the person you wrote the check to. That alone can add up to 60.00 for just ONE bounced check. That can also spiral out of control if one bad check turns into several bad checks.
I know for a fact that a lot of banks will deduct your highest check first so that they can have "several" smaller checks bounce because then THEY make more money. I've seen this get out of hand with women and some of them owing up to 500 to 600.00 just in bounced check fees.
If you do look for a personal loan, see what you can offer as collateral so that you can get a better interest rate even if your credit score is not that great.
About the author:
About the Author: Rebecca Game is the founder of Digital Women, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women. Visit her site: Loans for Women
http://loans.digital-women.com
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